the stock market boom of 2015 imagine that in 2015 the economy is in long-run equilibrium. then stock prices rise more than expected and stay high for some time. refer to stock market boom 2015. how is the new long-run equilibrium different from the original one?

Respuesta :

The correct option is  both the price level and real GDP rise.

A rise in price level brings increase in quantity of real GDP supplied and a movement up along aggregate supply curve.

In economics, the long-run is a hypothetical idea where all markets are in equilibrium, and all costs and amounts have completely changed and are in equilibrium. The long-run stands out from the short-run, wherein there are a few requirements and markets are not completely in equilibrium. All the more explicitly, in microeconomics there are no proper elements of creation over the long haul, and there is sufficient time for change with the goal that there are no imperatives forestalling changing the result level by changing the capital stock or by entering or leaving an industry. This differentiations with the short-run, where a few elements are variable (subject to the amount delivered) and others are fixed (paid once), obliging section or exit from an industry. In macroeconomics, the long-run is the period when the general cost level, legally binding compensation rates, and assumptions change completely to the condition of the economy, rather than the short-run when these factors may not completely change.

to know more about the microeconomics and macroeconomics click here:

https://brainly.com/question/1689139

#SPJ4

ACCESS MORE